Members of the Independent Shareholders Association (ISA) have backed the Securities and Exchange Commission‘s recent move on Oando Plc. According to them, the commission has the sole authority to fire board members of listed firms who engage in market infringements.
Shareholders’ Point: The shareholders explained that this in line with the Companies and Allied Matters Act (CAMA), which states that SEC has the power to order the resignation or sack of any chief executive involved in fraudulent activities.
According to the former Secretary-General of the ISA, Adeleke Adebayo;
“Asking if SEC has the power to fire is like asking if CBN can sack any bank chief and we know about the last one that happened after the consolidation.
“SEC has the right, as the apex regulator, to hire and fire board of listed firms if there are infractions and enough weighty evidence to prove that it happened. This is not the first time SEC is wielding its big stick on board members of quoted companies.”
The shareholders also asked the Nigerian Stock Exchange (NSE) to suspend trading on the shares of the company to avoid massive dumping from investors.
The Backstory: Nairametrics earlier reported that SEC ordered Oando Plc‘s Group Chief Executive Officer (CEO), Wale Tinubu to resign from his position over serious infractions including false disclosures, market abuses, amongst others.
The regulator also barred Tinubu alongside his deputy, Omamofe Boyo from being directors of any quoted company for the next five years.
SEC went ahead to set up an interim management team for Oando Plc as a replacement for the board members it ordered to step down.
Oando’s response: Following the conclusion of a forensic audit conducted by SEC on Oando, the company said the regulator did not follow due process in its investigation, and the accusations leveled against it should be rescinded, because its is invalid, and an effort to sabotage its business.